Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Butter and Margarine
B
Coffee and Tea
C
Cars and Bicycles
D
Salt and Pepper
Understanding the Answer
Let's break down why this is correct
Answer
In economics, substitute goods are products that can be used in place of each other. This means if the price of one good goes up, people may choose to buy the other good instead. For example, if the price of coffee rises, some people might start buying tea instead, since both drinks serve a similar purpose of providing caffeine. Substitutes are important because they show how consumers react to changes in prices and help businesses understand competition. Understanding substitutes helps us see how choices in the market can change based on different factors.
Detailed Explanation
Butter and margarine can replace each other. Other options are incorrect because Some think coffee and tea are substitutes, but many people enjoy both; Cars and bicycles serve different needs.
Key Concepts
substitutes
Topic
Substitutes and Complements in Economics
Difficulty
easy level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.